Analysis of social factors and their relationship with perceived risk for e-commerce purchases (original) (raw)
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Many purchasing decisions have an associated level of risk deriving from the uncertain environment facing the buyer and the possible negative consequences of an online purchase. Through an empirical study, using a regression analysis of latent variables and the ordinary Partial Least Squares (PLS) optimization technique, a model that represents the relationship between customer orientation, social influence, reputation, privacy and how they affect the perceived risk, is proposed. The purpose of this is to enable companies to develop more effective methods of reducing this barrier and create strategies to increase purchases through e-commerce. Gran parte de las decisiones de compra tienen asociado un nivel de riesgo procedente del ambiente incierto al que se enfrenta el comprador, así como de las posibles consecuencias negativas que puedan producirse. A través de un estudio empírico, y mediante un análisis de regresión de variables latentes por medio de la técnica de optimización de mínimos cuadrados ordinarios (PLS), se propone un modelo que represente las relaciones entre la orientación del cliente, la influencia social, la reputación, la privacidad y cómo estas afectan el riesgo percibido; esto con el fin de permitir a las empresas elaborar estrategias más efectivas para atenuar esta barrera y con ello, el aumento de las compras por canales de comercio electrónico.
Proceedings of the Tarumanagara International Conference on the Applications of Social Sciences and Humanities (TICASH 2019), 2020
Online shopping is a recent phenomenon is a trend for the future of shopping method. The high enthusiastic consumer through online shopping method is inseparable from the perceived risk that consumer will face. Consumers' perceived risk has been considered as a fundamental concern of the purchase decision process. This research aims to know the relationship between the perceived risk and the purchase decision on online shop consumer. The total participants in this research are 385 people. This research was using accidental sampling and snowball sampling. The results of this research show that there is a negative and significant relationship (r =-0,517 **, p = 0000 < 0.05) between perceived risk with purchase decisions on online shop consumers. This research also found that all dimensions of perceived risk have negative and significant relationships with the purchase decision. As the result of data concluded that the increase of perceived risk by consumers when shopping online...
Online customer behavior: perceptions regarding the types of risks incurred through online purchases
Palgrave Communications, 2020
AbastractDeciding to make online purchases can be risky and retailers have an opportunity to influence the consumer’s decision-making process. The aim of this article is to gauge the impact of different types of risks on trust and decision making with regard to online purchases. We conducted a survey with adaptations to three theoretical scales. To analyze the impact of risk on the variables of trust and decision making, a confirmatory factor analysis was performed, and to clarify the relationships between these constructs, a structural equation model was prepared. A qualitative (n = 13) and quantitative study were conducted with primary data (n = 328) collected by means of a structured questionnaire using a sample of a group of consumers who reside in the south of Brazil. The article makes four main contributions to the field: (i) it identifies the influence of three latent constructs that might affect online purchase behavior; (ii) it gauges the risks associated with the latent co...
Teoria e Prática em Administração, 2024
This study aims to develop a model to explain how perceived risk and anxiety affect the intention to make transactions online. Methods: We applied an online survey consisting of 285 valid respondents. The data were analyzed with structural equation modeling using Smart-PLS 3.2.8 with the application of PLS-PM model through Con`irmatory Factor Analysis. Findings: Results demonstrate that social, physical, and performance risks were not statistically signi`icant to explain the intention to conduct transactions online, meaning only that time risk, anxiety and psychological risk are statistically signi`icant in`luences. Theoretical contributions: Although the literature demonstrates that technological anxiety can catalyze perceived risks, this research found that it did not strongly affect the analyzed consumer sample. Thus, respondents positively feel safer when doing `inancial online transactions. This research advances discussions on consumers performing an online transaction facing emotional, physical, and `inancial risks. Practical implication: This study shows that consumer behavior has been less affected by emotional factors, such as anxiety and risk perception, arising from the use of digital technologies to carry out online transactions. A relevant aspect to be explored by managers and decision makers is to further explore the convenience factor in their actions, which will further reduce the effects of risk perception and anxiety in carrying out online transactions. Because if they know how the consumers behave during an online transaction, they can improve the actions to favor a successful transaction.
Perceived Risk on Consumer Online Shopping Behaviour
Journal of Applied Accounting and Taxation
This study aims to determine the effect of perveived risk on consumer online shopping behavior of fashion product. The significant difference presented are the product category, using the category of fashion product as the most demand category by consumers. Samples used are students in the field of accounting at universities. The result of this research are there is negative influence of perception of product risk to customer satisfaction and re-purchased intention. The perveived cost risk has no negative effect on satisfaction and re-purchased intention. Perception of individual risk do not have a negative effect on customer satisfaction and re-purchased intention.
Online Purchasing Decisions Affected by Social Factors and Functionality
Journal of Internet and e-business Studies, 2023
Online shopping has been experiencing continuous growth over the past few decades, a trend that was further accelerated by the COVID-19 pandemic. There is no expectation that this trend will slow down in the near future. The goal of this paper is to investigate specific factors, which could affect purchasing decisions on the Internet. We created two models, tested and compared them applying logistic regression on the sample of 1318 adults. Model 1 was designed to test the importance of other customers' reviews by purchasing decisions. Model 2 tested the financial/non-financial benefits of online shopping. In model 1, we identified these statistically significant predictors related to social characteristics 1. Gender, 2. Study at university, 3. Identification with statement, 4. Purchase on electronic marketplaces, and with functionality: 5. The most trust-inspiring e-shop function, 6. Comparison of similar products from different sellers before purchasing. These factors explain, according to Nagelkerke R, 0.196 variability. In the second model for the social characteristics were: 1. Type of settlement, and for functionality: 2. Preferred payment option, and they explain 0.0341 variability of the dependent variable.
AFRICAN JOURNAL OF BUSINESS MANAGEMENT, 2012
With the increasing spread of internet and its application in various business processes and its profit by saving time and reducing place limitations via the web, a better observation was made for the several forms of trade boom to take better. However, this situation deals with a variety of risks with their various forms. Some studies show that these risks create negative attitude in users and they are the most important preventive factors in using e-commerce. The aforementioned factors caused complexity, challenge, ambiguous and risk feeling in the customers' use of electronic capabilities. This paper analyzes the base researches in the theory of perceived risk and reviews the related research in two major dimensions of e-commerce: "Buying and selling products online and e-services". Also, the study compares the findings with existence researches in Iran, as a developing country. Consequently, we identify a general classification of the risks and their effects in e-commerce.
Impacts of Perceived Risk and Attitude on Internet-Purchase Intention
This research paper aims to explore the correlations among perceived risk, attitude and intention of purchase through internet. Also, the research investigates the significant differences among the customers' perceptions of the perceived risk, attitude about internet-purchase according to; gender, education, age and use experience. The hypotheses are tested with e-survey data collected from 412 participants from Saudi Arabia. According to the best of author's knowledge, this is the first research that investigates the correlations of the variables structure according to Saudi people. The author recommends future researchers examine the same relations in researches focusing on other markets.
Perceived Risk Factors Affecting Consumers' Online Shopping Behaviour
The Journal of Asian Finance, Economics and Business, 2019
The study examines the impact of financial risk, convenience risk, non-delivery risk; return policy risk and product risk on online consumer behavior of Malaysian consumers. The research employed a self-administered survey to collect empirical data from 245 Malaysian online shoppers by using convenience sampling. Cronbach alpha was calculated to confirm the reliability of the data and then normality was assessed. Confirmatory Factor Analysis was then conducted to test the model using the goodness-of-fit tests. And finally, structural equation modeling is used to test the hypotheses and draw conclusions. IBM SPSS AMOS version 22.0 was utilized for data analysis. The research indicates that product risk, convenience risk, and return policy risk have a significant and positive impact on online shopping behavior. Financial risk is found to have insignificant and negative effects on consumer behavior. In addition, the non-delivery risk is found to have a significant and negative impact on online shopping behavior. The findings provide a useful model for measuring and managing perceived risk in online shopping which may result in an increase in participation of Malaysian consumers and reduce their cognitive deficiencies in the e-commerce environment. Several managerial implications are discussed along with the scope for future research.
Understanding what motivates and impedes shoppers from either purchasing or not purchasing through the Internet will become increasingly important as more and more consumers around the world gain access to and experience on the Internet. Showing the strongest sales growth of any country in the Middle East, Saudi Arabia (S.A.) is on the cusp of the Internet revolution. Using the Extended E-Commerce Technology Acceptance model, this research investigated what consumers from both Saudi Arabia and the United States (U.S.) perceive about using technology for online shopping as well as their perceptions of risk. U.S. consumers had a more positive attitude toward online shopping as well as a greater intention to shop online. These consumers also perceived technology for online shopping more useful and easier to use than S.A. consumers. In all cases, U.S. consumers perceived less overall risk to online shopping and less perceived risk on 6 different risk dimensions than did S.A. consumers. As 99% of U.S. respondents had purchased a product online compared to only 28% of S.A. respondents, experience with the online purchasing process may contribute significantly reduced levels of perceived risk as well as a more positive attitude to shopping online, a greater intention to shop online, perceived ease of use and usefulness. Results shed light on understanding how situational differences (online shopping experience) may be related to cultural differences (nationality) with regards to perceived risk in online shopping.